(Bloomberg) -- Discount retailer Big Lots Inc. has filed for bankruptcy protection and plans to sell the firm’s assets and ongoing business in a court-supervised process.

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The Columbus, Ohio-based company said it filed for Chapter 11 bankruptcy in Delaware, according to a company statement. It listed assets and liabilities of $1 billion to $10 billion in its court petition. Chapter 11 allows a company to continue operating while it works out a creditor repayment plan.

Big Lots sought court protection after suffering from years of declining same-store sales and closing location. It entered into a sale agreement with an affiliate of private equity investor Nexus Capital Management LP, according to the retailer’s announcement. Under the agreement, Nexus will serve as a “stalking horse bidder”, meaning that if no higher or better offers come from other parties, Nexus will buy the business.

Big Lots anticipates the transaction to close during the fourth quarter of 2024 if Nexus remains the winning bidder, the statement added.

The retailer has secured commitments for $707.5 million of financing in the form of a post-petition credit facility, according to the company. As a result, Big Lots expects to have sufficient liquidity while it works to complete the sale transaction, it said.

Big Lots is among a number of troubled retailers that have been hurt by a slowdown in home spending. Retailers Conn’s Inc. and LL Flooring Holdings Inc. also filed bankruptcies in recent months.

(Updates with details of statement)

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